Impact And Various Aspect Of Ecommerce

Published Date: 02 Nov 2017

Introduction

E-commerce gives every business the competitive edge against large multinational organizations in the global market. Current electronic commerce has become an essential part of everyday business; we now must take a look at how the emergence of e-commerce has affected the global marketplace and how has e-commerce changed the regular and quality of living. It would also be important to discuss some of the drawbacks or poor effects that e-commerce has had on society. Electronic commerce has had a deep effect on global trade in services. World trade involving computer software, entertainment products, information services, technical information, product licenses, financial and professional services has grown quickly in the past decade.

Impact and various aspect of e commerce

E-commerce allows consumers to have more suppliers, sometimes including foreign suppliers and investors. Consumers can now search online to find the lowly price. E-commerce has made the global marketplace larger which makes the marketplace become more aggressive. The increase in competition is beneficial to consumers. The improved competition lowers prices for consumers and other businesses.

Further, the increase in information and choice available can help increase the competence of the supply and demand equilibrium the boost in competition also forces companies to become more efficient. As e-commerce grows, other countries are increasing their contribution in the global digital economy. Companies now have to introduce new technologies or methods to decrease overhead costs and increase productivity which is also brings lower prices to consumers. The leading products in both the business-to-business and business-to-consumer markets are electronically delivered products such as software, travel services, entertainment, and finance and other department of the organization.

In fact to the nature of such products, business is increased globally. Business-to business markets are growing quickly because e-commerce has a significant impact on overhead cost decrease and business effectiveness.

Businesses that use the Internet to buy, sell, distribute and maintain products and services are realizing important cost savings and increased sales opportunities and the benefits only increase as the network of businesses conducting electronic commerce grows There have been some negative effects on the economy due to the appearance of e-commerce. It is assumed that the availability of goods online should increase competition but this does not always occur. Of good reputation companies who have majority control over their industry can sometimes keep up high prices.

Further, the Internet allows companies to obtain pricing information from their competitors companies simply and allows them to react immediately to external changes. Company monitoring can also work against consumers. Since other companies can rapidly change their price, the original company would not make any extra revenue from increased. There is also the issue of product differentiation. Increased competition due to ecommerce allows companies to better create products especially for a positive target audience. This makes it difficult for consumers to compare products and lessens the competition and keep prices high.

Electronic commerce expands it has a superior social impact. The social impact of e-commerce is characterized by the globalization of markets, the shift towards an economy based on knowledge and information, and the growing prominence of technology in everyday life. E-commerce expands; there becomes a greater need to improve education about the business and technical side of e-commerce. Traditional educational institutions will have to incorporate e-commerce market and information technology into the set of courses to prepare new graduates for the new marketplace. The health sector is also being affected by the development of e-commerce. In some cases the use of these e-commerce sites can be help the system work more efficiently in turn be more cost effective.

By reducing costs using these methods more money can be made available to other areas of the health sector another aspect of society that is affected by electronic commerce is the intellect of community. Consumers can now belong to a more global community by being able to buy goods from around the world. However this has its own societal effects. There is a loss of direct physical interaction between individuals. There is also less consumer loyalty due to the global aspect and the lack of physical interaction of e-commerce. Companies now enclose to deal with an entire global market and many face difficulties in catering to specific customers to solidify their reliability.

For traditional businesses that do not conduct business online, they may begin to suffer electronic commerce continues to grow. As well, e-commerce helps to increase the use and improve computer technology that can be used by society. As more people begin to use e-commerce, more companies begin to create new technology to increase productivity. With the invention of new technology, there can be a better communications and easier access to the Internet in order to encourage an even larger market.

New technology also leads to more resources of the Internet easier to attain to more people in society. Again, as companies appear better methods to expand their online-businesses new technologies may be developed. These new technologies may not only help e-commerce, but may be useful in other parts of society as well and adverse effect of e-commerce is the manner is which consumers are now shopping.

It is argued that the Internet and the availability of e-commerce increases society's propensity to impulse buy. Desire buy is usually seen as short term, but with the introduction of e-commerce, the tendency to desire buy is becoming more long-term due to the accessibility and the convenience of online shopping. On-line shoppers are more impulsive than non-shoppers, seek more selection, and are less risk averse and less brand and price mindful, characteristics that have shown to be consistent with urge-driven impulsive purchasing behavior that ignores long term consequences. Impulse buying is considered short-term but consumers can become chronic compulsive buyers by shifting their enjoyment from specific purchases to the overall shopping experience.

Unfettered on-line buying could become a major social problem as e-commerce grows. The growing compulsive buying tendencies of consumers coupled with their similarity for the Internet, causes special concern.

It is speculated that there will be social costs from reduced productivity, personal bankruptcies, disrupted families and insolvent lives due continued unregulated buying from consumers. Today’s consumers benefits from a selection of products and services that has been unmatched in traditional channels in the past Without leaving the comforts of home and with a click of a button, consumers can access thousands of web sites and obtain any type of information or purchase any product they desire. The net economic growth due to the digital revolt will also benefit society by creation of highly skilled jobs. It is important that the current labor force and few workers be well educated and trained in order to qualify for such jobs. E-commerce will be the largest and most assorted way of doing business in the future since it has the ability to reach almost every market, every person, and every business and do so simultaneously and instantaneously.

Electronic commerce provides a exclusive way of doing business that comes with its own set of benefits and consequences. The size of the global market has increased which provides businesses with more customers and offers customers more choices. Through e-commerce, it is easier for consumers to individualize products and services to their specification. E commerce also limits the amount of links between the retailer and the consumer.

Products can now be shipped in a straight line from the manufacturer to the customer, which in turns makes online transactions cheaper than long-established transactions. Though there are many benefits to both consumers and business, the use of electronic commerce comes with its share of economic, social and legal issues. Consumers are doubtful to use online business because they often have limited guarantees about the isolation of their information. If the privacy issues can be addressed, electronic commerce has the probable to play a constructive role in helping improve the world of business. E-commerce systems could help further businesses set up personal relationships with customers, target specific niche markets, facilitate trust and leverage a range of other social and other stake holders.